Malta Gaming Authority CEO Resigns
The Maltese Government announced that Malta Gaming Authority (MGA) CEO Heathcliff Farrugia and chief regulatory officer Karl Brincat Peplow handed in their resignations on Tuesday.
Farrugia and Brincat Peplow's Joint Venture
In 2018 Mr Farrugia was named CEO of the MGA to succeed Joseph Cuschieri, who became CEO of the Financial Services Authority of Malta. He first joined the Maltese regulator as its COO in 2014, and then promoted to the role of chief regulatory officer in 2016.
Heathcliff Farrugia and Karl Brincat Peplow have also been put on gardening leave with no managerial responsibilities, with contracts set to expire early next year.
Mr. Farrugia told the governors' board of the MGA that he had opted not to renew his contract to concentrate on other opportunities. The MGA claims both Mr. Farrugia and Mr. Brincat Peplow have stepped down to pursue an undisclosed joint venture initiative.
Two Leaders Of The MGA Prosecuted Financial Fraud
The timing of the exit is incredible, since it is rare for top executives to leave a company without a significant warning.
The MGA and the Financial Services Authority of Malta faced criticism when an investigation into murder revealed ties between the authorities and the perpetrators.
The Maltese Financial Crime Investigation Department recently asked Heathcliff Farrugia about "suspicious communication" with Jorgen Fenech. In November 2019, prosecutors arrested the casino operator for its suspected connection to the 2017 murder of journalist Daphne Caruana Galizia.
Former chairman and CEO of the MGA, Joseph Cuschieri, had strong relations with Mr. Fenech but said no conflict of interest was present. It has been confirmed, however, that he already had ties at the MGA and was overseeing financial operations in Malta.
Malta To Pass The Next MoneyvalTest In Spring
Malta missed the first anti-money laundering test for Moneyval in 2019. As a result, criticism of the country's tax rebate system has picked up. If the island fails to pass the next evaluation in spring 2021, it may face improved surveillance procedures.
The gaming industry in Malta produces about €1.56 billion that benefits the economy and provides 7,417 jobs. So taking a harder stand against financial crime is important for the region.
In October, the MGA reported that sportsbook operators accredited to Malta would need to disclose unusual betting activities to the agency from January.
The regulator is also expected to grant all B2C-licensed operators access to its Suspicious Betting Monitoring System (SBRM) beginning in November.
